What good has the recession done for fashion designers?

Posted by Ari on May 5, 2009 | 2 Comments

WWD has a big piece on the positives of the recession, seen from the perspective of fashion designers and managers.

Karl Lagerfeld is optimistic about Chanel, saying that they ‘did even better this year than last year at the same time.’ Clearly some labels are doing better than others.

So where is the growth? According to Dior CEO Sidney Toledano the markets that have seen the strongest growth are London (tourists spending driven by a weak pound), China (growth in the “double digits”), and South Korea (Japanese travellers spending strong Yen). Ralph Lauren CEO Roger Farah points out that the label’s recently opened Dubai store has done better than expected, while also planning an expansion to South Korea.

Executives are also talking about accounting more for geographical variations in customers’ wants. There’s often a trade-off between catering to very particular local markets (Toledano gives the example of Florida during the summer) and maintaining brand integrity. The recession seems to have made brands more flexible in terms of catering to local conditions. For consumers, that’s good news!

What’s the advantage of being a small label? First of all, there aren’t too many overheads to worry about. Alexander Wang points out that smaller labels have a great opportunity now. While the giants are struggling to keep themselves afloat, small labels can expand aggressively.

Finally, Isabelle Guichot of Balenciaga points out that the ‘crisis is a period in which we can gain market share and prove we’re amongst the players of tomorrow’.

So here’s our tip: survive the next year and prosper when things get good again!

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Comments

2 Responses to “What good has the recession done for fashion designers?”

  1. KattyBlackyard
    June 15th, 2009 @ 2:15 am

    Hi, very nice post. I have been wonder’n bout this issue,so thanks for posting

  2. CrisBetewsky
    July 6th, 2009 @ 3:50 pm

    You know, I don’t read blogs. But yours is really worth beeing read.

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